Question
We generally know that IQ scores are a strong statistical predictor of multiple future life outcomes - income, education levels, health, even longevity. There are
We generally know that IQ scores are a strong statistical predictor of multiple future life outcomes - income, education levels, health, even longevity. There are hundreds of studies that confirm these correlations.
So in that sense, it "predicts" your future "success".
But for every individual we ascribe as a "genius," from Mark Zuckerberg to Steve Jobs, there are just as many that struggle with mental illness and personal crises like Nobel Prize laureate John Nash (of "A Brilliant Mind" fame).
Perhaps you will also agree with me that Mark Zukerberg, the creator of Facebook (now called Meta) - one of the most successful Social Media platforms is also a very socially akward person.
In fact, some research indicates a correlation between high intelligence and mental health issues.
But all that aside, consider this data set of IQ scores and annual earnings.
IQ Score | Annual Earnings |
130 | $ 135,000 |
119 | $ 98,000 |
85 | $ 65,000 |
135 | $ 125,000 |
115 | $ 98,000 |
120 | $ 110,000 |
Looking at these data, and performing the required and appropriate analysis on Excel, please answer the following questions;
- Is there a correlation between IQ scores and Annual Earnings? (Yes/No)
- What is the strength of the correlation?
- Is the correlation positive or negative?
- If a person had 0 IQ (hypothetically of course). what would their potential earnings be?
- For every point of additional IQ score, what is the increased earning potential?
- All calculations are shown clearly, including Excel output
Step by Step Solution
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